Many Montana residents might enjoy a holiday bonus due to actions by the Office of the Commissioner of Securities and Insurance. A multi-state task force, including the Montana Auditor’s Office, investigated major brokerage firms for charging excessive commissions, violating federal law, and amassing nearly $19 million. This summer, settlements were announced, and Montana Auditor James Brown confirmed that affected Montanans will soon be reimbursed.
“We take our consumer protection role pretty seriously at this agency and we have some really good news to announce to folks who have been wronged,” Brown stated. The task force uncovered that Montanans were overcharged $160,000, which will be refunded. Affected residents will receive notifications and may see reimbursements via checks or direct deposits.
Brown remarked, “We’re going to be giving a number of Montanans some good Thanksgiving news.” Earlier, settlements were reached with brokerage giants including Edward Jones, LPL Financial, RBC Capital Markets, Stifel, Nicolaus and Company, and TD Ameritrade, following allegations of unreasonable commission charges on small equity trades.
From 2018 to 2025, these firms charged nearly $19 million in excessive fees over 1.1 million transactions. In Montana alone, over 8,000 transactions were affected, leading to $160,000 in restitution. The firms have agreed to pay administrative fines, cover investigative costs, review policies, and permanently stop charging unreasonable commissions.
“This settlement with these firms on these transactions that violated federal law is just another step we’ve taken since I became commissioner to hold Wall Street firms accountable when they engage in wrongdoing,” Brown said. Further investigations involving other companies are ongoing.
The commissioner’s office advises Montanans to check their mail for settlement notifications and potential reimbursements. Residents can reach the state securities and insurance office via email at [email protected] or call 406-444-2040.
Earlier, the auditor’s office disclosed a multi-state settlement with Edward Jones over front-load commission charges. Additionally, a settlement with the Vanguard Group, Inc resolved issues regarding capital gains tax distributions from retirement funds in 2021.
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